ECON Credit card rate

[33dInd]

Have a Home Depot credit card.
I use it around the place for smaller jobs.
I do carry a small balance forward some months

Well. Got a notice in the mail from them
Intrest rate is going to 29.99% effective March 1

Never missed a payment. Paid balances off several times. Account is ten years old.
Never abused it
Highest it ever got was $3000

29.99%
Gonna finish it out and close it

Just an alert to ya all. The robber barons are afoot

 

[Blacknarwhal]

Getting what they can get while it's there to be had.

 

[Kathy in FL]

They have several different cards and programs. None of our accounts have gone up yet but we have the contractor type cards. Could be a game changer if they pull that crap with us. We spend a lot of money there for property management. It gets paid off every month but we've also got access to other cards if we need them.

 

[ShadowMan]

Got rid if all but one card and used ONLY for emergencies. SCREW 'EM!! It simply does not pay to buy anything on credit. Doesn't matter how good the sale is - CASH IS KING!!

 

[Kathy in FL]

Got rid if all but one card and used ONLY for emergencies. SCREW 'EM!! It simply does not pay to buy anything on credit. Doesn't matter how good the sale is - CASH IS KING!!

Not if the feds have their way ... at least as far as commercial bank accounts go. Limits on cash deposits. Even if you don't meet the limit on your account, the "backroom" controllers will close any account that meets any of their unwritten regulations and they don't have to tell anyone why ... not even branch management.

And yes I know this to be factual as we recently had to deal with this at PNC bank and we've had to deal with it more than once over the last 25+ years. It doesn't matter that we "over inform" to let them know where the cash comes from down to the specific unit address. It doesn't matter that we also pay bills from an account that align with the business usage. None of it matters. If the fed regulators say close the account - especially an account that deals in a lot of cash - that is what is going to happen.

Those controls are filtering down to non-commercial accounts and users. Buy the wrong thing? Pay the wrong person? Make a series of unusual purchases? Wire money out of your account? I know people who have had their accounts closed for this.

There are new rules that you can't even transfer money between business accounts.

The insanity is thickening and expanding.

 

[WalknTrot]

Store based cards are the worst, though they will ALL do this if they can during times of high rates and people having a tough time making payments. I have maintained a couple of low interest, FIXED rate cards over the past 30+ years. There are sizeable available balances there if ever needed for an emergency, but that's all they should ever be used for unless paid in full every month.

 

[Griz3752]

Just an alert to ya all. The robber barons are afoot

They're probably being chauffeured or flown; 'afoot' is for we plebeians but I completely understand.
Wife used Firestone for decades but they sent out a similar notice.

 

[colonel holman]

strangling the use of cash to promote all-digital transactions, eventually thru ongoing IRS oversight

 

[Intestinal Fortitude]

cut it up and mail it to corporate HQ

 

[hiwall]

If you cannot pay off your credit card bill then go to your bank and get a personal loan to pay off the credit card. A lot less interest.
In the past if you called the credit card company and asked they would often cut the rate for certain length of time to help you get caught up.
Never run a CC balance unless it is a dire emergency.

 

[Reasonable Rascal]

Every card I have charges from 16 to 29% effectively (some decimals in there) and has for years. I pay the full amount every month so I don't worry about it. The days of 6%, 9% or even 12% cards seem long gone. I watch the balance and end of period days so I know what I have to pay the next payment due date vs. what can 'float' to the following month, i.e. charged after the period ended for that month. Cash back and points are incentives I take advantage of, and I also have protection I don't using a debit card.

RR

 

[changed]

Have a Home Depot credit card.
I use it around the place for smaller jobs.
I do carry a small balance forward some months

Well. Got a notice in the mail from them
Intrest rate is going to 29.99% effective March 1

Never missed a payment. Paid balances off several times. Account is ten years old.
Never abused it
Highest it ever got was $3000

29.99%
Gonna finish it out and close it

Just an alert to ya all. The robber barons are afoot

you have to pay the balances of the people who can't pay their own.

 

[anna43]

A few months ago my dd told me she had $1200 in car repairs to pay. I suggested she go to her Credit Union and get a loan. No, she was going to put it on her credit card. I told her the interest rates will kill her, but she didn't listen.

 

[lindseyaz]

Yep, we received the same notice from Citi in regard to our Home Depot card. 29.99%. Insanity. Like you, never missed a payment in all the years we've had it.

 

[Anti-Liberal]

All the credit card offers that I've gotten in the last year have been 29.99%. I just shred 'em.

 

[Henry Bowman]

Most of this is due to high credit balances ( not by you per se but in general) and a large number of defaults happening.

Going to get worse , a lot worse , before it colapses.

 

[Tundra Gypsy]

We pay cards off every month. We only keep a couple of cards; hubby carries a BofA card because he likes to accumulate mileage to travel to Alaska to fish. I keep one for misc. purchases, another one just for gas. I pay cash for groceries, coffee, meals, etc.

 

[KFhunter]

I don’t like using debit card for subscriptions, apps or online purchases. So I use a few different cards, some just for travel. I had to contact Garmin a while back, my inReach quit on me so I cancelled my subscription service, yet after a few months they started billing me again, got no where with Garmin, they agreed my subscription was indeed cancelled, yet I kept getting bills so I started a unauthorized thing with my CC company, they refunded it. I think with using a CC you get an extra layer of protection for unwanted charges.

 

[feralferret]

Received the same interest rate change notice from Home Depot in today's mail.

I used the card about a week ago for the first time in nearly two years. Will pay it off in a few days. They were going to lower the purchase limit if the card wasn't used soon. I needed some electrical supplies for adding outlets at my daughter's house, so I ordered them and had them shipped there. Actually got a surprisingly good deal on the Romex wire.

 

[Taco Salad]

I got an offer from Sportsman's Guide last month that had an interest rate of 33 and change.

 

[BH]

I've got 2 cards. A credit union card with a big limit and still reasonable rate, this card has no balance and is for emergencies. I do not carry this card. Try and use it once a year.

Other card is an Amazon cash back card. I do not know the current rate, but it's high. There has never been an unpaid balance. I pay most of my bills with this card and never pay any interest. The cash back pays both mine and my wife's prime membership and gives me hundreds of dollars in free Amazon purchases each year. My debt to limit ratio now stays around 5% thanks to a generous bump in credit limit on the cash back card.

 

[tno5]

I got an Amazon Store card because you receive $100 free to open one - but the card rate is 29.99%. After I used the free $100, I stopped using it as my payment choice and went back to my bank card - interest rate is 12%.

 

[Bones]

It appears that now all credit cards must be ran by Fingerhut. Remember those rapists from back in the late 80s.

 

[Ta-wo-di]

They are all Loan Sharks

 

[hiwall]

Let's say the credit card companies dropped the card interest rates to 5%.
How long would they stay in business?

 

[feralferret]

Let's say the credit card companies dropped the card interest rates to 5%.
How long would they stay in business?

Not long, but 30% is ridiculous, especially with the prime rate being what it is. I could see 15%, maybe even up to 20%. The should be able to make a reasonable profit at that level.

 

[Scrapman]

Useful people are picnicking up the tab for useless people.

 

[33dInd]

It appears that now all credit cards must be ran by Fingerhut. Remember those rapists from back in the late 80s.

Actually no
Could you add more?

 

[hiwall]

Not long, but 30% is ridiculous, especially with the prime rate being what it is. I could see 15%, maybe even up to 20%. The should be able to make a reasonable profit at that level.

But almost all the banks have one foot in the grave right now.
Instead of knocking the banks we all should be thankful that they are still open. I think the time is getting closer to all of them closing.

 

[Seabass]

They have several different cards and programs. None of our accounts have gone up yet but we have the contractor type cards. Could be a game changer if they pull that crap with us. We spend a lot of money there for property management. It gets paid off every month but we've also got access to other cards if we need them.

Our business cards and credit line interest rates have stayed the same as well. However, all personal card interest rates have skyrocketed and we have good credit. By God's grace we don't have to carry balances. However, if/when we get to that point, we'll be hitting the preps before ever carrying a balance.

Been there, done that - almost bankrupted us once before...

 

[Sandcastle76]

I have a credit card w/ Mastercard…it is only for emergency use. Just a got a letter explaining their new rates. I have very good credit and was only late once due to a hurricane. Wow !!!
APR for purchases… 34.99%
APR for cash advance…37.99%
APR for penalty when it applies…39.99% for how long, may remain in effect indefinitely
Return payment fee…$41
Paper statement fee…$1.99
Effective date…5/13/24
to quote… “Changes to the APR,s described are being made due to changes in market conditions”.

I can guarantee you what little balance I have on it will be paid off immediately. This is CRAZY !!

 

[SageRock]

Sounds like we're headed toward hyperinflation.

 

[20Gauge]

They have several different cards and programs. None of our accounts have gone up yet but we have the contractor type cards. Could be a game changer if they pull that crap with us. We spend a lot of money there for property management. It gets paid off every month but we've also got access to other cards if we need them.

Question: If you pay it off every month are you being charged any interest? I understand some of the cards these days do so from the time of purchase.....

 

[20Gauge]

Not if the feds have their way ... at least as far as commercial bank accounts go. Limits on cash deposits. Even if you don't meet the limit on your account, the "backroom" controllers will close any account that meets any of their unwritten regulations and they don't have to tell anyone why ... not even branch management.

And yes I know this to be factual as we recently had to deal with this at PNC bank and we've had to deal with it more than once over the last 25+ years. It doesn't matter that we "over inform" to let them know where the cash comes from down to the specific unit address. It doesn't matter that we also pay bills from an account that align with the business usage. None of it matters. If the fed regulators say close the account - especially an account that deals in a lot of cash - that is what is going to happen.

Those controls are filtering down to non-commercial accounts and users. Buy the wrong thing? Pay the wrong person? Make a series of unusual purchases? Wire money out of your account? I know people who have had their accounts closed for this.

There are new rules that you can't even transfer money between business accounts.

The insanity is thickening and expanding.

It gets better, they are now demanding all real estate transactions be reported to FINCEN. ALL OF THEM.

This is on top of the fincen reporting for all LLCs, 501c3, and any other state formed entity. There are restrictions, but they only apply to large corps..... multi million corps.......

 

[20Gauge]

FUN FACT!!!

The Bidens and their handling of their LLCs spoiled it for a lot of criminal types.... how?

As you don't need to 1099 any corp, ( llc etc ) most companies don't ( 99+% ). So you get an Itin, form an LLC and then open a bank account. Start your business and no one knows anything about it. Transfer all the money you want, deposit and spend like drunken sailors and there WAS NO WAY to know, at least on the state or federal level.

Thank has changed with the fincen stuff.......

Another thing people can thank Biden for.... lol

 

[ktrapper]

Question: If you pay it off every month are you being charged any interest? I understand some of the cards these days do so from the time of purchase.....

From what I understand interest is compounded daily on credit cards.

ETA. Brave search results:
Credit card interest is usually compounded daily, and it is calculated based on the account's annual percentage rate (APR).The daily interest rate is determined by dividing the APR by 365 to find the rate per day.5The credit card company calculates the interest you owe daily and adds that to the card's balance.134 As it accumulates, more interest will accrue and increase the balance you owe.0 The daily interest charges are all added up to determine your monthly interest payment, which keeps compounding until you pay your bill in full.1Compounding interest can make credit card payments more expensive, and it is important to understand how interest works to understand the cost of carrying credit card debt.

 

[end game]

Not if the feds have their way ... at least as far as commercial bank accounts go. Limits on cash deposits. Even if you don't meet the limit on your account, the "backroom" controllers will close any account that meets any of their unwritten regulations and they don't have to tell anyone why ... not even branch management.

And yes I know this to be factual as we recently had to deal with this at PNC bank and we've had to deal with it more than once over the last 25+ years. It doesn't matter that we "over inform" to let them know where the cash comes from down to the specific unit address. It doesn't matter that we also pay bills from an account that align with the business usage. None of it matters. If the fed regulators say close the account - especially an account that deals in a lot of cash - that is what is going to happen.

Those controls are filtering down to non-commercial accounts and users. Buy the wrong thing? Pay the wrong person? Make a series of unusual purchases? Wire money out of your account? I know people who have had their accounts closed for this.

There are new rules that you can't even transfer money between business accounts.

The insanity is thickening and expanding.

Oh I was unaware that cash remittances out of the country by "underdocumented" folks were being rejected or heavily scrutinized?

 

[WildDaisy]

Better yet, keep a debit card account. A Murphy account (Murphy's law, whatever can go wrong will) and plan for it). That way you have money in a checking account set aside that will take care of those unexpected expenses without incurring any interest. Home repairs, car repairs, replacement of appliances, medical expenses, job layoff, unexpected trips to family for funeral or other family commitment.

 

[Tristan]

Have a Home Depot credit card.
I use it around the place for smaller jobs.
I do carry a small balance forward some months

Well. Got a notice in the mail from them
Intrest rate is going to 29.99% effective March 1

Never missed a payment. Paid balances off several times. Account is ten years old.
Never abused it
Highest it ever got was $3000

29.99%
Gonna finish it out and close it

Just an alert to ya all. The robber barons are afoot

Personally I'd consider paying it off and keeping it.
Canceling a credit card can ding one's Credit Score.
As can opening new credit card accounts.

But definitely wouldn't carry a balance. That is nearly Loan Shark rates.

Glad you caught the new terms. I've known some folks that didn't and got bit badly.

 

[Sandcastle76]

Better yet, keep a debit card account. A Murphy account (Murphy's law, whatever can go wrong will) and plan for it). That way you have money in a checking account set aside that will take care of those unexpected expenses without incurring any interest. Home repairs, car repairs, replacement of appliances, medical expenses, job layoff, unexpected trips to family for funeral or other family commitment.

The reason I don’t do that is that we have a rainy day fund put aside at home. I travel/drive extensively for work and our debit cards have been hacked too many times, so we keep a low balance in those accounts. Got the card for mainly car repair issues and for the payment of hotels if I get stuck or sent out in an emergency to a different location. Credit cards get hacked also but it is easier and faster to deny charges on a credit card than get money put back into a personal bank account / debit card account.